4A Public Hearing 2016 0516 - Laserfiche WebLink

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File Number: 16-033 • High Efficiency HVAC at City Hall, Main Library and Marina Community Center • LED Building Interior and Exterior Lighting Fixtures • Occupancy -based Lighting Controls • Building Automation System Upgrades • Weather -based Irrigation Clocks The Climatec projects target energy and water savings while at the same time addressing longer-term deferred maintenance needs. According to the Measurement and Verification Agreement, these improvements will pay for themselves through various savings combinations including but not limited to savings recovered through reducing energy, water and operating costs, and release of CIP funds. Climatec and the City will enter into an Installation Agreement (Attachment A) and a Measurement and Verification (Guarantee) Agreement (Attachment B), both of which must be approved in order to proceed with the energy and water -saving improvements. The breakdown of costs for each proposed energy/water-savings project is also provided as Attachment C to this report. Current Agency Policies Implementation of the proposed efficiency projects will make significant progress on the City's adopted Climate Action Plan (CAP). Specifically, it will address CAP Goal #6.1, "Increase Energy Efficiency and Renewable Energy Use in City Facilities". The CAP states that "Greenhouse gas emissions related to buildings, streetlights and water/sewage facilities comprise 34 percent of San Leandro's total government operations emissions inventory". As proposed, Climatec's Energy/Water Efficiency Projects will reduce electric consumption by 1,977,391 kWh, and water consumption by 4,872,061 gallons annually (see Attachment D). Legal Analysis The City Attorney assisted in the negotiations, review of the draft agreements and finds that the agreements with Climatec meet the City's requirements, such that these agreements are approved as to form. Fiscal Impacts The total cost for infrastructure improvements, including taxes and bonds, equals $5,270,455. Fifteen year lifecycle savings are projected at $1,173,065, after accounting for the costs of the improvements, which is an average annual savings of $78,204. The Measurement and Verification Agreement includes a "Savings Guarantee" under which Climatec warrants that the City will realize energy and water cost savings and utility rebates in excess of the project costs. Should the project fail to realize these savings, Climatec will have the opportunity to take corrective action to bring the improvements into compliance. Should that process also fail to achieve the projected savings, Climatec will be required to pay the City the shortfall amount. The City has a variety of options to fund these improvements, including Measure HH funds, or issuing debt. Because zero upfront capital from the City is a firm requirement, the Finance City of San Leandro Page 3 Printed on 5110/2016